The twenties are back! And with them comes a chance to look at the upcoming decade and map out some long-term financial goals.
What will your life look like 10 years from now? Where do you hope to be by 2030?
The start of a new decade is an excellent opportunity to look not only at the upcoming year, but also at your long-term goals and what you hope to accomplish over the coming decade.
One of the simplest ways to plan effective one-year goals is to start years down the road and reverse engineer your way to more immediate plans.
Here are some tips to plan out your financial goals for the next 10 years:
Your 10 Year Financial Plan
It can be a challenge to look 10 years into the future if your current reality feels stretched to capacity, but if you avoid long-term planning, you risk years going by without making any meaningful progress.
Start broad, and consider what major financial moves you’d like to make by 2030. Maybe you want to:
- Pay off student loans
- Pay off your mortgage
- Move to a new city
- Improve your portfolio
- Start a family
Your goals might not be on that list, but the most important part is that you think about them, and make them as specific as possible. Yes, things change. You might have a brand new plan five years from now. But in the meantime, take steps toward your major goals. Your future self will thank you.
Your Five Year Financial Plan
Look at your major future goals and consider where you would need to be five years from now.
What would you need to have saved? Which big life moves would you need to make? What does your career, family and personal life look life? What major expenses and changes do you see happening over the next few years?
It’s a bit easier to comprehend what your life will look like five years from now, so try to narrow down your goals even more from here.
Your One Year Financial Goals
Regardless of how big or small your long-term goals are, they all have to start somewhere. And that starting point is one small step, then another, and then another. When you’re planning for the next ten years, your long-term vision is your guide, but your year ahead is where your real power is.
Don’t make the mistake of just addressing whatever immediate stress or crisis you’re dealing with. Try to really tackle something this year that will make a difference down the road, and get you closer to those five- and 10-year goals.
From there, you can break down your goals into actions you’ll take each month, week and day. You’ll have a better idea of what seeds to plant now that will pay off in 10 years.
This is also an excellent opportunity to see if you have enough support to reach those goals, or if you need the help of a certified financial planner to get there.
And if you need help setting those goals, I have some resources to help you get started:
About Your Richest Life
At Your Richest Life, Katie Brewer, CFP®, believes financial resources and fee-only financial planning should be accessible. For more information on the services offered, contact Katie today.